“Bank of America has not committed any potential violations…let alone failed to cure those potential violations,” wrote Meyer G. Koplow and Theodore N. Mirvis, attorneys from the New York law firm Wachtell, Lipton, Rosen & Katz.

Schneiderman on Monday announced his intention to sue Bank of America, the second-largest U.S. bank by assets, and Wells Fargo & Co. (WFC) for allegedly violating rules over giving fair and timely service to homeowners seeking relief under the settlement.
Schneiderman said his office found 339 violations, 129 of which he said were from Bank of America.

“As our letter to the monitor makes clear, we have the right to bring a suit against parties that violate the servicing standards and will do so,” said Damien LaVera, a spokesman for the attorney general.
The national mortgage settlement was made between the five largest mortgage servicers and 49 state attorneys general last year.

Under the terms of the settlement, Schneiderman must notify the settlement’s monitor, Joseph A. Smith, Jr., and then wait 42 days before suing.

Schneiderman acknowledged Monday that he cannot immediately proceed with a lawsuit. But both sides disagree about when the clock starts ticking on those 42 days.

Schneiderman’s office argues the countdown began Monday, when he sued. But Bank of America’s lawyers argue that it can’t begin until after the time has passed to address “uncured” violations.

Bank of America alleges it was only notified of potential violations this week and needs time to resolve them before Schneiderman can claim they have not been addressed.

The letter, which was also sent to the settlement’s monitoring committee, says that the bank knew nothing of Schneiderman’s concerns until his office sent out a press release Monday about his intention to sue.

Representatives from the bank say they have held regular conference calls with Schneiderman’s staff since May 2012 to work through problems arising from loans on a case by case basis.

“In all that work and in related communications with your office, there was never any suggestion that there was any concern that Bank of America had engaged in ‘flagrant violations’ or any ‘pattern’ of violation that has now been suggested,” the letter stated.

The attorney general’s office believes it did raise the issues with the bank, said a person familiar with the conversations.

The lawyers also said in the letter that the bank requested immediate documentation from Schneiderman’s office over the violations, but have not received anything.

The settlement’s monitor had planned to raise concerns over servicing quality in an upcoming report before Schneiderman’s press conference, said people familiar with his plans. If those problems aren’t subsequently addressed, the monitor can then issue penalties, including fines.